Faraday Future Intelligent Electric has signed definitive agreements with FF EAI Robotics Ecosystem Inc. for FFR to acquire Faraday Future’s full robotics ecosystem business at an agreed valuation of approximately $200 million. The transaction advances the companies’ previously announced process from a non-binding term sheet to a definitive contractual agreement.
Following completion, FFR is expected to operate as a Nasdaq-listed pure-play humanoid and bionic Embodied AI robotics company built around what the companies describe as a “Four-Core Full-Stack AI” ecosystem. Faraday Future plans to remain the majority and controlling shareholder of FFR, allowing it to continue participating in the long-term development of the robotics business through the independently listed company.
The companies agreed to value Faraday Future’s robotics business at approximately $200 million and FFR at approximately $60 million on a fully diluted basis. The valuations reflect the parties’ assessment of the strategic value of the respective businesses rather than prevailing market prices alone. The transaction structure has also been simplified from the earlier term sheet, including the removal of a previously contemplated special stock dividend mechanism.
FFR’s existing assets include its Nasdaq listing, shareholder base, trading infrastructure, RoboShare business, cash and cash equivalents, note receivables, and certain investments. The companies see potential synergies between RoboShare and the robotics business across sales, leasing, deployment, and recurring services. The standalone listing is also expected to give the robotics operation direct access to U.S. capital markets.
FFR has separately secured up to $10 million in first-round PIPE financing. The financing is priced at market with no discount or warrants and is intended to support product research and development, commercialization, and scaled deployment while limiting unnecessary dilution.
Upon closing and on an as-converted, fully diluted basis, Faraday Future is expected to own approximately 65.7% of FFR. Management and employees are expected to own approximately 18.2%, PIPE investors approximately 5.5%, and other FFR shareholders approximately 10.7%. Shares issued to Faraday Future through the transaction will be subject to an 18-month lockup.
FFR plans to develop a full-lifecycle robotics platform spanning research and development, supply chain, manufacturing, sales, deployment, data, and operations. Faraday Future management’s preliminary standalone projections for the robotics business anticipate approximately $7 million of revenue in 2026 and $45 million in 2027, with cumulative revenue of approximately $1.98 billion between 2026 and 2030. Management also projects positive operating cash flow in the third quarter of 2028. These projections have not been adopted by FFR as company guidance and actual results could differ materially.
Faraday Future management also projects sales of 2,001 EAI devices in 2026 and 7,400 in 2027, with cumulative unit sales exceeding 130,000 over five years. The company expects ecosystem-related revenue from areas including its EAI Brain and Developer Platform, Industry Productivity Solutions, and EAI Data Factory to increase as a share of total robotics revenue over time.
The transaction also supports a broader strategic shift at Faraday Future. The company plans to move toward a lighter-asset operating model focused on a Robotaxi Sharing Network and AI VisiCabin technology, working with RoboShare across shared mobility, Robotaxi operations, intelligent cabin technology, vehicle-asset onboarding, and related user services.
The companies expect to complete the transaction by the end of October, subject to closing conditions. Faraday Future said it intends to announce its next-stage strategy and business plan following completion.
KEY QUOTES:
“This agreement will help us grow the business, develop our technology, and build our AI systems. This marks a new beginning for both companies and an important step for EAI and Physical AI as they move from exploration to building an industry together, and making a major leap forward, which will give the robotics business a dedicated public-company platform alongside RoboShare’s capabilities.”
YT Jia, Founder And Global Chief Executive Officer Of Faraday Future
